Correlation Between EXACT Sciences and FOXO Technologies
Can any of the company-specific risk be diversified away by investing in both EXACT Sciences and FOXO Technologies at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining EXACT Sciences and FOXO Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EXACT Sciences and FOXO Technologies, you can compare the effects of market volatilities on EXACT Sciences and FOXO Technologies and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in EXACT Sciences with a short position of FOXO Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of EXACT Sciences and FOXO Technologies.
Diversification Opportunities for EXACT Sciences and FOXO Technologies
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EXACT and FOXO is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding EXACT Sciences and FOXO Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FOXO Technologies and EXACT Sciences is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on EXACT Sciences are associated (or correlated) with FOXO Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FOXO Technologies has no effect on the direction of EXACT Sciences i.e., EXACT Sciences and FOXO Technologies go up and down completely randomly.
Pair Corralation between EXACT Sciences and FOXO Technologies
Given the investment horizon of 90 days EXACT Sciences is expected to generate 0.46 times more return on investment than FOXO Technologies. However, EXACT Sciences is 2.18 times less risky than FOXO Technologies. It trades about -0.14 of its potential returns per unit of risk. FOXO Technologies is currently generating about -0.07 per unit of risk. If you would invest 4,497 in EXACT Sciences on January 9, 2025 and sell it today you would lose (466.00) from holding EXACT Sciences or give up 10.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
EXACT Sciences vs. FOXO Technologies
Performance |
| Timeline |
| EXACT Sciences |
| FOXO Technologies |
EXACT Sciences and FOXO Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EXACT Sciences and FOXO Technologies
The main advantage of trading using opposite EXACT Sciences and FOXO Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EXACT Sciences position performs unexpectedly, FOXO Technologies can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FOXO Technologies will offset losses from the drop in FOXO Technologies' long position.| EXACT Sciences vs. Natera Inc | EXACT Sciences vs. Caredx Inc | EXACT Sciences vs. Illumina | EXACT Sciences vs. Twist Bioscience Corp |
| FOXO Technologies vs. Heartbeam | FOXO Technologies vs. EUDA Health Holdings | FOXO Technologies vs. Nutex Health | FOXO Technologies vs. Healthcare Triangle |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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